REPORT TO HOUSING AND HUMAN SERVICES COMMISSION
SUBJECT
Title
Consider Request from Second Harvest of Silicon Valley for Forgiveness of Community Development Block Grant (CDBG) Loan.
Report
BACKGROUND
In 1992, the City provided a loan of $25,000 in CDBG funds to Second Harvest of Silicon Valley to construct a food distribution center at 750 Curtner Avenue in San Jose. Since construction thirty years ago, the food distribution center has continued to operate, serving residents in Santa Clara County (Sunnyvale Community Services is a major partner), and the larger Bay Area.
The loan terms outlined in the Deed of Trust, executed in 1992, was a thirty-year term, 3% simple interest, and no payments due until the loan maturity. Upon loan maturity on July 20, 2022, principal and interest on the loan would be immediately due and payable for a total of $47,569.86.
Earlier this year, the City notified Second Harvest of Silicon Valley that the loan was soon maturing, and the balance would be due. Soon after the notification, Second Harvest of Silicon Valley sent a letter to the City formally requesting the City to forgive the CDBG loan in full.
Staff has currently allowed a pause on payment until the Council considers this item.
The City Council will consider this item on December 13, 2022.
EXISTING POLICY
Housing Element of the General Plan
GOAL HE-5 Equal Housing Opportunities - Promote equal housing opportunities for all residents, including Sunnyvale's special needs populations, so that residents can reside in the housing of their choice.
Policy HE-5.6
Participate in the County Collaborative on Affordable Housing and Homeless Issues to support its efforts to prevent and end homelessness. Facilitate and sponsor the provision of permanent supportive housing for homeless people. Support local service providers that offer facilities and support services to homeless individuals and families, and persons at risk of homelessness.
2020-2025 Consolidated Plan, Str...
Click here for full text